GRT Rubber buys Valley Rubber, expanding South American footprint

PARAGOULD, Ark.—For GRT Rubber Technologies L.L.C., the Nov. 18 acquisition of Valley Rubber L.L.C. means an expanded international footprint, especially as it relates to mining and aggregate operations in South America, and complementary cross-market sales that are direct-to-customer.

For the Falkville, Ala.-based Valley Rubber, the purchase means further exposure to the transfer and dust-suppression markets—which GRT knows well in agriculture—with its heavy duty industrial belting and liners.

The partnership appears to have involved a bit of southern hospitality from both companies.

"We could not ask for a better partner than GRT, and our team is excited about the synergies that will be created by combining complementary products and solutions," said Cronan Connell, CEO of Valley Rubber. "GRT's involvement in markets like agriculture, where transfer points and dust suppression are crucial, will provide new exposure for our company. Together, we will be stronger to the benefit of our employees, customers, and business partners."

While GRT typically sells its custom rubber belts (polyester and nylon, among other elastomers) to distributors and maintains a core focus on the conveyance of sand, gravel, cement and other heavy, abrasive aggregates, Valley Rubber provides screening and conveyor liners (chute and haul truck) and makes auxiliary products that are sold directly to the aggregate and mining markets, addressing issues of end-user sales for GRT.

GRT manufacturers the entirety of its product line at a 142,000-sq.-ft. facility in Paragould, located in northern Arkansas.

Both GRT and Valley Rubber bring enviable histories in the belting industry to the new partnership, as GRT began as Boston Woven Hose in 1880 and Valley Rubber traces its lineage to its founding in 1967.

"Our team is thrilled to be partnering with a fellow Southern rubber manufacturing company," said GRT CEO David Brown. "Valley Rubber is respected in the industry, and their well-defined culture and operational excellence aligns with our values. Valley's expertise in the aggregate and mining industries will provide us with more access and material exposure to our current and new markets."

GRT has a significant manufacturing presence in North America, and Valley Rubber will add its "growing presence" in Chile, Mexico and Peru with a focus on the mineral-producing markets.

Valley Rubber also has a facility in Minden, Nevada.

The deal was brokered by Main Street Capital Corp., a publicly traded company that has provided capital to GRT Rubber since 2014.

"GRT has been a tremendous investment and portfolio company for us over the past seven years," said Colton Braud, managing director at Main Street. "Add-on acquisitions rarely occur this far from the initial investment date for private equity-backed companies, but our continued financial support of GRT is a testament to the strength of our partnership."

Brown said GRT became "less of a strategic fit within the larger vision" with GRT's previous parent company.

"Having a steady and willing provider of capital with a long-term, patient approach to investing like Main Street opened the door to many possibilities for our company, which has allowed us to expand our product offerings and add services that we did not previously have," he said.

To learn more about GRT and Valley Rubber's products, visit grtrubber.com and valleyrubber.solutions/.